Tanzania is aiming to finalise a long-awaited agreement by June 2026 for a $42 billion liquefied natural gas (LNG) export project, a move that could unlock one of the country’s largest-ever foreign investments and significantly boost its energy sector.
Government officials said discussions with international energy companies are progressing steadily, with key commercial and regulatory issues nearing resolution. The project, which will involve the development of offshore gas fields and construction of an LNG processing facility, is expected to position Tanzania as a major gas exporter in the region.
The proposed LNG development is being led by a consortium of global energy firms that have been seeking clearer fiscal terms, regulatory stability, and assurances on project governance before committing to a final investment decision.
Tanzania holds an estimated 57 trillion cubic feet of natural gas reserves, most of them located offshore. While the country already uses gas for domestic power generation and industrial activities, the LNG project would enable large-scale exports to international markets, particularly in Asia and Europe.
Authorities say the project is aligned with Tanzania’s broader strategy to attract foreign investment, expand energy infrastructure, and drive long-term economic growth. Once operational, the LNG facility is expected to create thousands of jobs during construction, boost government revenues, and stimulate local supply chains.
Despite repeated delays over the years due to negotiations and shifting global energy conditions, officials remain optimistic that the June timeline is achievable, citing improved engagement with investors and recent reforms aimed at strengthening the investment climate.
If concluded, the deal would mark a major milestone for Tanzania’s natural gas ambitions and rank among the most significant energy investments ever undertaken in East Africa.
